Review of the Arts Council of New Zealand - Toi Aotearoa Act 1994
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Background
Creative New Zealand’s current governance structure is set by the Arts Council of New Zealand Toi Aotearoa Act 1994 and includes:
- a seven member Council
- two seven member arts boards – Te Waka Toi and the Arts Board
- a committee of the Arts Board, the Pacific Arts Committee.
The Minister for Arts, Culture and Heritage appoints Council and board members. Te Waka Toi members and Māori members of the Council are appointed in consultation with the Minister of Māori Affairs. The Arts Board appoints Pacific Arts Committee members, currently seven.
Why change the current governance structure?
The Government made a commitment to review Creative New Zealand’s governance structure to improve efficiency and make the best investment of resources for the benefit of New Zealand artists and arts organisations.
The main concerns with the current structure are:
- the split between policy and strategic direction (the role of the Council) and funding allocation decisions (the arts boards) does not operate well in practice because:
- the Council’s remoteness from current and emergent sector issues undermines its strategic and policy development roles
- the arts boards’ responsibility for decision-making on a large part of the Council’s mandate and budget undermines the Council’s accountability for organisational performance
- the position of the Pacific Arts Committee as a subsidiary of the Arts Board complicates accountability arrangements, and
- there is overlap and duplication in the work of the Council and the boards
- it is difficult for the Council to hold the Chief Executive accountable for organisational performance because of the lack of clear accountability and efficiency between the roles of the arts boards and management
- The cost (direct and indirect) of servicing four bodies is high (estimated at $1,300,000 per annum or 16% of operating costs)
- The current arrangements with 28 appointed members are complex and disproportionate to Creative New Zealand’s size (55 staff), functions and budget
What is the proposed structure?
New legislation will establish a single board responsible for determining strategic direction and priorities for the organisation, and for funding decisions. The board will have the power to appoint advisory committees on matters relating to its functions.
The board will include members selected to bring:
- appropriate knowledge of Māori arts
- appropriate knowledge of Pacific arts
- representation of the broader diversity of New Zealand’s population
- relevant arts management and/or practitioner expertise, and
- appropriate governance expertise.
What are the benefits of the proposed structure?
One board of up to 13 Ministerial appointees providing appropriate representation, diversity and expertise will:
- require fewer resources and free staff to focus on artists, arts organisations and arts development
- locate responsibility for policy, direction-setting and allocating funding with one body for greater efficiency
- ensure the board’s strategy and policy direction are informed by direct engagement with funding disbursement and awareness of sector issues
- provide clear lines of accountability for the board to the Minister, and between the board and the Chief Executive
- result in direct cost savings of approximately $200,000 per annum and significant indirect savings mainly in staff time servicing the current structure.
How will Māori participate in governance?
At least four board members will be appointed after consultation with the Minister of Māori Affairs. Appointments will be based on selection criteria to ensure appropriate knowledge of Māori arts.
A committee comprising all board members representing Māori arts will be established. Its powers and functions will be to:
- give advice and recommendations to the board and carry out any other functions or powers delegated to it by the board. This could include advice related to upholding the principle to recognise in the arts the role of Māori as tangata whenua; for example funding policies, strategic direction and planning, initiatives and recognition of achievements of Māori in the arts
- ensure Māori participation in policy making, strategy setting and funding decisions
The legislation will also include a requirement that Māori are included in peer assessment processes relating to Māori arts.
How will Pacific people participate in governance?
At least two board members will be appointed after consultation with the Minister of Pacific Island Affairs, based on selection criteria to ensure appropriate knowledge of Pacific arts. This will ensure Pacific participation in policy making, strategy setting and funding decisions.
The legislation will also include a requirement that Pacific people be included in peer assessment processes relating to Pacific arts.
What will happen to community arts providers and community arts councils?
The current provisions in the Act that allow the board to establish community arts councils, designate and allocate funding to community arts providers will be transferred to the new board, as a consequence of disestablishing the current arts boards.
Contact person
Mary Donn, Acting Policy Manager Arts and Culture, Ministry for Culture and Heritage, Phone 04 4966357 or cnzreview@mch.govt.nz
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